Monero (XMR) Weakens as Correction Deepens: Analysts Warn of Further Drop Below $350
Overview
Monero (XMR) is experiencing significant downward pressure as the broader market correction intensifies. The privacy-focused cryptocurrency has seen an 8% decline over the past 24 hours, marking the fourth consecutive day of losses and raising concerns among traders about a deeper pullback.
Current Market Situation
Monero’s recent price drop has erased the recovery observed last week, indicating a shift in market sentiment. Traders are increasingly positioning themselves for a potential downturn, with XMR’s price currently trading at $375. The cryptocurrency’s daily chart reveals substantial losses, signaling a weakening trend.
Increasing Selling Pressure
Recent derivatives data indicates a growing bearish sentiment among traders. Monero’s futures Open Interest has decreased in the past 24 hours, while short positions now represent more than 55% of total trades. This decline in Open Interest, which stands at approximately $78 million, suggests that traders are withdrawing capital amid rising fears of further price declines.
Technical indicators corroborate this bearish outlook. The Relative Strength Index (RSI) has fallen below the midline, indicating diminished momentum. Additionally, the Moving Average Convergence Divergence (MACD) has issued a new sell signal, highlighting deteriorating buying interest and increasing risks that XMR may breach its current support levels.
Support Levels at Risk
While XMR has maintained an overall bullish structure on higher timeframes, the short-term outlook appears decidedly bearish. The price is currently testing critical support zones, with the 50-day Exponential Moving Average (EMA) at $348 identified as a key level to monitor. A close below $358, which is in line with the neckline of a double-top pattern, could confirm a bearish breakdown and potentially lead to further losses.
Analysts caution that this scenario may become more probable if market demand continues to weaken. Retail traders are shifting their focus to alternative opportunities, and the overall risk sentiment remains fragile. Despite these concerns, there is a slight glimmer of hope. Analysts suggest that if XMR can maintain a position above $373, there may be potential for an intraday rebound toward the $400–$410 resistance range. However, with the price slipping below this threshold, it may be challenging for bulls to regain control.
Privacy Narrative and Network Upgrades
Despite the current market challenges, Monero continues to attract interest due to its focus on privacy-preserving technologies. Notable upgrades, such as the Fluorine Fermi hard fork, have enhanced network security and improved resistance to surveillance threats. Long-term forecasts for Monero remain cautiously optimistic, with projections hinting at steady, albeit moderate, growth through 2030 and beyond.
Impact on the crypto market
- Monero’s recent price decline reflects broader market trends, potentially influencing trader sentiment across other cryptocurrencies.
- The rising bearish conviction may lead to increased volatility in the crypto market as traders react to shifting support levels.
- Continued interest in privacy technologies could sustain Monero’s relevance, even amid short-term market corrections.
- A potential breakdown below critical support levels could trigger further sell-offs, impacting overall market dynamics.
- The performance of Monero may affect investment strategies for retail traders, especially as they explore alternative opportunities in the current market environment.
Updated: 11/20/2025, 1:48:45 AM
